JM Smucker gets Folgers coffee boost, sees strong FY

J.M. Smucker, best known for its peanut butter & jelly, posted a higher quarterly profit that easily beat market view, driven by strong results at its Folgers coffee business, & expected its full-year profit at the top end of its outlook. Orrville, OH-based Smucker also backed its $4.65B full-year sales outlook. In June, it forecast fiscal year 2010 $3.65 to $3.80 a share adjusted earnings. "Smucker has terrific brands which are aided by consumers eating more at home. There's nothing more basic than peanut butter & jelly sandwiches," Scott analyst Mitchell Pinheiro said. Its gross margins rose in the 1st-Q, mainly due to strong sales volumes & a favorable product mix at Folgers. Folgers is largest producer of retail packaged coffee in the U.S. Its product offerings include Folgers & Millstone brands & a license to manufacture & distribute Dunkin' Donut coffee in the retail grocery market. Smucker, which acquired Folgers in Nov last, said it saw efficiencies from integration of Folgers as its marketing & adm costs fell as a percentage of sales from the 08 period. It also recorded high volumes in several categories including Smucker's fruit spreads & Uncrustables sandwiches, Pillsbury baking mixes & frostings & Hungry Jack potatoes & pancakes. But, volume gains were more than offset by price drops taken earlier this yr, primarily at its U.S. retail oils & baking segment, & higher promotional spending in some categories, it said. It cut oil, shortening & flour prices by13% in Jan. & lowered canned milk prices by 7% in June due to a fall in commodity costs, a company exec said. It posted a $98.1M, or 83